2021 - Adobe Reader 53 Tools 834 000 975 000 48000 Current assets Cash and cash equivalents Inventory Accounts receivable 480000 306000 750000 225000 Total assets 1980000 2229000 1 134 000 996 000 600000 EQUITY AND LIABILITIES Equity and reserves Share capital Preference share capital Share premium Retained earnings 600000 180000 60000 294.000 180000 60000 156.000 AR GO 2021. Adie Reader on my Tools Sign 300 000 Non current liabilities 15% Debentures 240 000 240000 300000 REGENT BUSINESS SCHOOL (RBS) - JANUARY 2021 16 ADVANCED DIPLOMA IN FINANCIAL MANAGEMENT-ACADEMIC AND ASSESSMENT CALENDAR DISTANCE 546 000 Current liabilities Bank overdraft Dividends payable Accounts payable 0 993 000 330 000 18 000 845 000 24 000 522 000 Jan 2021.0 Adobe Reader Help Toote Sign Con 546 000 993 000 Current liabilities Bank overdraft Dividends payable Accounts payable 24 000 522 000 330 000 18 000 645 000 Total equity and liabilities 1,980,000 2,229,000 ADDITIONAL INFORMATION: 1. Earnings before interest and taxation amounted to R 156 000 (2019 R125 000) 2. The following balances are available for 28 February 2019 Inventory R630 000 Accounts receivable R400 000 . O Vas 2021.odt - Adobe Reader Toats Co Total equity and liabilities 1.980,000 2,229,000 . ADDITIONAL INFORMATION: 1. Earnings before interest and taxation amounted to R 156 000 (2019R125 000) 2. The following balances are available for 28 February 2019 Inventory R630 000 Accounts receivable R400 000 Accounts payable R575 000 3. Turnover for the year ended February 2020 amounted to R12 000 000 (2019 R10 000 000). The gross profit percentage is 25% 4 Half of turnover (50 %) is credit sales and 75% of purchases are credit purchases REQUIRED Balan 21.- Adobe Reader 10 Tools REQUIRED Prepare the following ratios for 2020 and comment on the ratios calculated using the ratios for 2019 {presented in brackets): - 1. Debt ratio (2019:0,55:1) (6) 2 Current ratio (2019: 0.98.1) (2) 3. Quick ratio (2019: 0,22 1) (2) 4 Debt/equity ratio (2019: 1241) (4) REGENT BUSINESS SCHOOL (RBS) - JANUARY 2021 17 Jan 2018 Adobe Reader Tools Sign Curs ADVANCED DIPLOMA IN FINANCIAL MANAGEMENT-ACADEMIC AND ASSESSMENT CALENDAR DISTANCE 5. Debtors collection period (23 days) (3) 6. Creditors collection period (39 days) (4) 7 Solvency ratio (2019. 1.81) 4) QUESTION TWO [33] 2.1 Explain what a budgeting is and how a good budgeting process benefits a company? (4) O